Modrall Sperling to Monitor New Mexico "Blue Ribbon Tax Reform Commission"

April 16, 2003

Summary
The New Mexico Legislature recently enacted legislation providing for a 23 person "Blue Ribbon Tax Reform Commission." Members of the Commission have been appointed from the public and private sectors. The Commission will begin hearings around May 1 and must complete its work by September 1, 2003. It is our understanding that the Commission will probably convene for public hearings around the state in 8-10 two-day sessions.

The New Mexico Legislature recently enacted legislation providing for a 23 person "Blue Ribbon Tax Reform Commission." Members of the Commission have been appointed from the public and private sectors. The Commission will begin hearings around May 1 and must complete its work by September 1, 2003. It is our understanding that the Commission will probably convene for public hearings around the state in 8-10 two-day sessions.

The Commission is charged with drafting proposed legislation for New Mexico tax reform, as well as a report to the Legislature and Governor. It is widely anticipated that, after the Commission delivers its report, the Governor will call a special session of the Legislature to address New Mexico tax reform. It appears that the Commission is willing to consider a very wide range of issues in New Mexico's taxing system, including changes to the gross receipts tax, corporate income tax, industry specific reforms and perhaps some administrative issues relating to the Taxation and Revenue Department. Though a legislatively stated goal of the Commission is to promote economic development, there are early indications that the Commission may be more governed by a desire to protect and/or enhance state and local revenue sources.

The principals of Modrall Sperling's State and Local Tax Group, Curtis Schwartz and Tim Van Valen, will monitor the Commission meetings, generating daily updates and analysis of matters considered by the Commission. Curtis and Tim are also available to assist you in analyzing your individualized needs as they may relate to issues that arise before the Commission or the special session. If you are interested in subscribing to the monitoring services, or individualized consultations and analysis, please contact Curtis at (505) 983-2020 or Tim at (505) 848-1847.

Modrall Sperling's Governmental Affairs Group will also provide lobbying assistance, with technical support from the State and Local Tax Group, to advocate for changes that your business needs or to prevent changes that will be adverse to your business. Please contact R.E. Thompson at (505) 848-1821, Pat Rogers at (505) 848-1849 or Marco Gonzales at (505) 848-1851 for lobbying assistance.